These were the biggest power industry operations and technologies deals in the three months to August
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These were the biggest power industry operations and technologies deals in the three months to August

By Michael Goodier 28 Sep 2021 (Last Updated November 23rd, 2021 17:05)

There were 44 deals recorded involving top power industry operations and technologies companies in the three months to August.

These were the biggest power industry operations and technologies deals in the three months to August

There were 44 deals recorded involving top power industry operations and technologies companies in the three months to August with a number of high profile acquisition, private equity, asset transaction, merger and venture financing deals.

That’s according to GlobalData’s Financial Deals database, which tracks market activity across a variety of sectors and deal types.

The deals below only include those that have been completed – so excludes rumours or those that have been agreed but not yet executed.

The figures, which cover the top power industry operations and technologies companies, show the market in the US to be the most active, with 13 deals taking place over the last three months. That was followed by the UK, which saw four deals.


Below are some of the largest completed deals to have taken place in the last quarter.

Acquisitions

Enlight Renewable Energy Acquires 90.1% Stake in Clenera - 30 June ($390m)

Enlight Renewable Energy LTD., a renewables IPP and developer, through its wholly-owned U.S. Subsidiary, has completed the acquisition of 90.1% stake in Clenera, LLC, solar and storage developer, from Jason Ellsworth and Adam Pishl, for purchase consideration of USD389.7 million, at an enterprise value of up to USD433 million.

The acquisition consideration will be divided between upfront payments of USD158 million, and future performance-based payments.

This transaction is expected to expand Enlight's development portfolio to over 16 GWdc of solar and wind, and 7.5 GWh of energy storage in 11 countries.

With this transaction, Enlight Renewable Energy will hold 90% of Clenera's shares, while Clenera's founders, Jason Ellsworth and Adam Pishl will retain 10% of Clenera's shares.

Nomura Greentech served as financial advisor and Orrick Herrington & Sutcliffe LLP served as legal counsel to Enlight Renewable Energy. DLA Piper served as legal counsel to Clenera.

Deal History:

Announced: On June 30, 2021, Enlight Renewable Energy through its wholly-owned U.S. Subsidiary, entered into a definitive agreement to acquire 90% stake in Clenera, from Jason Ellsworth and Adam Pishl, for purchase consideration of USD389.7 million, at an enterprise value of up to USD433 million.

Innergex Renewable Energy Acquires Remaining 50% Stake in Energia Llaima - 30 June ($71m)

Innergex Renewable Energy Inc., a renewable energy company, has acquired the remaining 50% stake in Energia Llaima (Ellaima), a renewable energy company, for a purchase consideration of USD71.35 million.

As a consideration for this transaction, Innergex issued to Energia Llaima's shareholders the number of Innergex common shares for an aggregate value of USD71.35 million at a price per share equal to the 10-day volume weighted average price, being 5 days before and 5 days after the announcement of the purchase operation.

Innergex completed the acquisition by issuing to Energia Llaima's shareholders 4,048,215 Innergex common shares at a price of CAD22.09 per share representing a 10-day volume weighted average price.

Innergex expects the additional 50% interest in Energia Llaima to generate Revenues Proportionate of approximately USD14.9 million and a projected Adjusted EBITDA Proportionate of approximately USD8 million per year on average for the first full five years. The transaction is also expected to be accretive by contributing USD3.6 million to the Free Cash Flow, before deriving additional value from the optimization of Energia Llaima's financing structure and implementation of operational synergies.

Energia Llaima has interests in and operates three hydro facilities in Chile with a gross installed capacity of 152 MW, a solar thermal facility with a gross installed capacity of 34 MW, as well as several projects in the development or prospective stages. It also manages operations at the Salvador solar farm on behalf of Innergex.

Deal History:

Announced: On June 30, 2021, Innergex Renewable Energy entered into a stock purchase agreement to acquire the remaining 50% stake in Energia Llaima, for a purchase consideration of USD71.35 million.

Advanced Energy Industries Acquires Tegam - 02 June ($18m)

Advanced Energy Industries, Inc., a developer of power and control technologies, has acquired Tegam Inc., a provider of metrology and calibration instrumentation used in semiconductor and advanced industrial markets, for USD18 million in cash. Both companies are involved in the transaction are based in the US.

Andy Brush is the CEO of Tegam.

Generac Holdings Acquires 84.2% Stake in Deep Sea Electronics from Caledonia Investments - 01 June ($3m)

Generac Holdings Inc, a US-based manufacturer of backup power generation products, has acquired 84.2% stake in Deep Sea Electronics Ltd, a manufacturer of backup power controllers from Caledonia Investments plc, for consideration of GBP2.42 million (USD3.43 million) in cash. Both Deep Sea Electronics and Caledonia Investments involved in the transaction are based in the UK.

Mitsubishi Corporation Acquires Additional Stake In Jetti Resources - 07 June

Mitsubishi Corporation, a Japan-based trading company, has acquired an additional stake in Jetti Resources LLC, a US-based natural resources company that has developed a cutting-edge, catalytic technology that allows for effective extraction of copper from primary sulfide ores.

Mergers

A2A Merges with LGH - 15 June

A2A S.p.A., an Italian company, organised as a societa per azioni, that generates, distributes, and markets renewable energy, electricity, gas, integrated water supply, and waste management services has agreed to merge with LGH, a US-based not-for-profit health system.

The preliminary proposal, which will be submitted to the approval of the competent corporate bodies of LGH's minority shareholders, provides that at the end of the merger the latter will hold 2.75% of the share capital of A2A.

Venture financing

Claroty Secures USD140 Million in Series D Funding - 17 June ($140m)

OTClaroty Ltd. (Claroty), a US-based cyber-security for industrial control networks, has secured USD140 million in Series D funding co-led by Bessemer Venture Partners' Century II fund and 40 North.

In addition, strategic investors include LG, I Squared Capital's ISQ Global InfraTech Fund, previous investors, including Temasek, Team8, and long-time customers and partners Rockwell Automation, Siemens, and Schneider Electric, have also participated.

OTClaroty's has secured total investment to USD235 million, to date.

Amir Zilberstein is the co-founder and chief executive officer (CEO) of Claroty.

Foley & Lardner served as counsel to LG Technology Ventures.

Urbint Secures USD60 Million in Series C Venture Funding - 24 August ($60m)

Urbint Inc, a US-based provider of AI powered field risk mitigation solution that helps utilities and infrastructure operators to maximize risk reduction and quantify trade-offs between safety, reliability and affordability, has secured USD60 million in Series C venture funding led by Energize Ventures.

In addition American Electric Power, OGCI Climate Investments, and existing investors Energy Impact Partners, National Grid Partners, Blue Bear Capital, and Salesforce Ventures also participated in the funding.

With this transaction, Urbint has secured USD109 million in total funding.

Corey Capasso is the Founder and CEO of Urbint.

Jetti Resources Secures USD50 Million in Series C Venture Funding - 04 June ($50m)

Jetti Resources LLC, a US-based natural resources company that has developed a novel hydrometallurgical technology to extract metals, has secured USD50 million in Series C venture funding led by Mitsubishi Corporation.

In addition, Freeport-McMoRan Inc, BHP Ventures, Orion Resource Partners (USA) LP and T. Rowe Price Associates also participated in the funding round.

Mike Outwin is the CEO of Jetti Resources.

Nanjing Zenshine Pharmaceuticals Secures USD30 Million in Series A+ Funding - 06 June ($30m)

Nanjing Zenshine Pharmaceuticals Co., Ltd, a China-based clinical stage biopharmaceutical company, has secured USD30 million in Series A+ funding led by STATE DEVELOPMENT& INVESTMENT CORP., LTD. (SDIC) and Matrix partners and LYZZ Capital.

CubicPV Secures USD25 Million in Venture Funding - 28 June ($25m)

CubicPV Inc, a solar industry that manufactures solar components, has secured USD25 million in venture funding from Hunt Energy Enterprises, L.L.C (HEE), First Solar, Inc, Breakthrough Energy Ventures (BEV) and others.

As part of the transaction, HEE will join the Board of Directors.

Private equity

APG, Alecta, PGGM, Keva and AXA Acquire 50% Stake in Stockholm Exergi from Fortum for USD3.4 Billion - 30 June ($3,459m)

Fortum Oyj, an energy company, has concluded the sale of its 50% ownership in Stockholm Exergi Holding AB, the district heating and cooling company, to a consortium of European institutional investors of APG Groep NV, Alecta Pensionsforsakring Omsesidigt, PGGM NV, Keva and Axa Real Estate Investment Managers Ltd., for total consideration of SEK29.5 billion (USD3.4 billion).

The total consideration is based on a 100% enterprise value of SEK71.9 billion.

Strategic reviews of the heating and cooling businesses in Poland and the Consumer Solutions business are still ongoing.

Advisors to the Consortium were DC Advisory and Rothschild & Co (M&A and Debt), White & Case (Legal - M&A), Latham & Watkins (Legal - Financing), AFRY (Commercial, Technical & EHS), PwC (Financial, Tax, Carve Out, IT and Operations), Hallvarsson & Halvarsson (Public Relations). The acquisition was supported with a financing package provided by Intesa Sanpaolo, Mediobanca - Banca di Credito Finanziario S.p.A., Natixis and Societe Generale. Lenders were advised by Weil, Gotshal & Manges.

Deal History:

Announced: On June 30, 2021, A consortium of five pension funds comprising APG Groep, Alecta Pensionsforsakring Omsesidigt, PGGM, Keva and Axa Real Estate Investment Managers, have signed an agreement to acquire 50% stake in Stockholm Exergi, from Fortum, for total consideration of SEK29.5 billion (USD3.4 billion).

Update: On March 12, 2021, Fortum said that, interest among investors to buy Fortum Oyj's stake increased. The company is also weighing the sale of its consumer business to increase investments into renewable energy and hydrogen.

Planned: On July 31, 2020, Fortum intended to sell it's 50% holding in Stockholm Exergi Holding AB, the district heating and cooling company.

Aurelius Equity Opportunities Acquires 100% Stake in Hydro Precision Tubing Lichtervelde from Norsk Hydro - 05 July

Aurelius Equity Opportunities SE & Co. KGaA, a German asset management group, has acquired 100% stake in Hydro Precision Tubing Lichtervelde (HPTL) from the Norsk Hydro ASA, a Norwegian aluminium and renewable energy company.

Deal History:
Announced: On July 5, 2021, Aurelius Equity had agreed to acquire aluminum precision tubes business from the Norsk Hydro.

Asset transactions

Northland Power Completes Project Financing of USD1.14 Billion for Refinancing of Deutsche Bucht Wind Farm Project in Germany - 02 June ($1,143m)

Northland Power Inc., a power generation company, has completed project financing of EUR935 million for refinancing of Deutsche Bucht offshore wind farm project located in Germany. The financing was provided by Cooperatieve Rabobank U.A., The Norinchukin Bank, Canadian Imperial Bank of Commerce (London Branch), National Bank of Canada, Caixabank, S.A., The Korea Development Bank Headquarters (KDB Bank, HQ), The Korea Development Bank (London Branch), Swiss Re Europe S.A., Commerzbank Aktiengesellschaft, Societe Generale S.A., Bayerische Landesbank (Bayern LB), DZ BANK AG, Frankfurt am Main, Sumitomo Mitsui Trust Bank, Limited, KfW IPEX-Bank GmbH, Landesbank Hessen-Thuringen Girozentrale (Helaba), SCOR Infrastructure Loans III and Export Development Canada (EDC). The total installed capacity of the project will be 252 MW.

The project produces energy to supply approximately 178,000 households and has reduced CO2 emissions by over 360,000 tonnes per year.

Watson Farley & Williams (WFW) has advised a consortium of leading German and international banks and financial institutions on the deal.

RWE Invests USD300 Million in Scioto Ridge Wind Farm in Ohio, US - 02 June ($300m)

RWE AG, has completed an investment of USD300 million in the construction and development of Scioto Ridge wind farm situated in Hardin and Logan Counties, Ohio, US. The total installed capacity of the power plant is 250 MW. The investment per MW is USD1.2 million.

Scioto Ridge is powered by 75 Siemens Gamesa turbines and has the capacity to generate clean energy for more than 60,000 households.

Iberdrola Invests USD296.5 Million in Clevlavin Solar Power Plant in Spain - 21 June ($297m)

Iberdrola SA, a renewable energy company, has made an investment of EUR250 million (USD296.5 million) in the construction and development of Clevlavin solar power plant situated in Extremadura, Spain. The total installed capacity of the plant is 328 MW. The investment per MW is USD0.9 million.

The plant will supply energy to a population equivalent to 175,385 homes/year and prevent the release of 100,000 t CO2/year. At peak times during the construction stage, more than 1,140 workers were employed on the project, 60% of them from nearby towns and other places in Extremadura.

Its green energy will supply clean electricity to the 9,000 points of supply in the Orange network, based on a long-term Power Purchase Agreement or PPA entered into with this telecommunications firm last year.

Canadian Solar Completes Project Financing of USD100 Million for Solar Projects in Brazil - 27 July ($100m)

Canadian Solar Inc., a solar energy company, has completed project financing of USD100 million for the construction and development of solar projects located in Brazil. The financing was provided by BTG Pactual and Itau BBA.

The facility will fund up to 70% of Canadian Solar's equity contributions in a subset of its Brazilian project portfolio, a unique structure in the local market.

Development Bank of Japan, Kansai Electric Power and Osaka Gas Acquires Three Operating Solar Projects in Japan from Etrion for USD74.8 Million - 22 June ($75m)

Development Bank of Japan Inc., Kansai Electric Power Co., Inc. And Osaka Gas Co., Ltd. (collectively the Consortium), have acquired three operating solar projects, situated in Japan, from Etrion Corporation, for purchase consideration of USD74.8 million. The combined installed capacity of the projects will be 47.2 MW. The transaction will imply a deal value of USD1.5 million per MW.

The three operating solar projects are 13.2 MW Komatsu, 24.7 MW Shizukuishi and 9.3 MW Mito solar energy projects.

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